Keith Gill, also known as “Roaring Kitty,” faces securities fraud charges in connection with collective lawsuits involving GameStop. Allegedly, his social media posts caused fluctuations in GameStop’s stock price from May to June. The claim was filed on June 28, 2021, in the Eastern District of New York, centered around Gill, notorious for shorting GameStop shares in 2021.
In May, Gill made his first public appearance in three years on his X (Twitter) account. The lawsuit suggests this indicates renewed interest in GameStop shares.
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In early June, Gill disclosed on Reddit that he had acquired a significant stake in GameStop, amounting to 50,000 shares and 1.2 million call options with a strike price of $20. This announcement led to a more than 13% surge in stock price during pre-market trading on July 3. On April 26, he revealed acquiring an additional 50,000 shares of GME stock, valued at $10 million.
Court documents allege that Roaring Kitty committed securities fraud by failing to disclose his trading of GameStop call options accurately, purportedly misleading his followers and causing losses to some investors.
Represented by the law firm Pompliano, plaintiff Martin Radev claims he suffered from so-called “pump and dump” schemes since mid-May, involving the purchase of a total of 1,000 shares of GME stock and three call options.
